Help Me With Sign Hawaii Banking Forbearance Agreement

Help me with industry sign banking hawaii forbearance agreement

I'm Tanya Ahina with century 21 I property Hawaii. My guest today is Rose Kirland of Aries Mortgage, she is a Senior Loan officer and today she joins us to talk about Forbearance Loans. Hi Tanya and everyone out there in the world I'm Rose Kirland. I have been in the mortgage business world for 41 years I started back in 1979. I worked for many companies because in the mortgage world, companies sometimes sell and get taken over, So at one time I was the Vice President for PNC Financial for the Kissel Company and then over the years I've been doing mortgages for many families, thousands of families. I am a mother of four sons and I say four because my grandkid really thinks he's one of my kids so I said no you're my grandson. I am one of 14 other brothers and sisters. We have a really big family. I love the mortgage business because it's about helping families and helping people get started with a plan to one day own their own home. I'm so happy to be here today and answer all your questions. Ok, so what is a Forbearance Loan? Okay, basically you are given a deferment so let's say because of situations that are happening right now financially you're unable to make your mortgage payments. Let's say starting May. So, you can request from your lender and it's totally up to the lender but you can request from your lender that you would like to have your loan mortgage payments forbeared or deferred so forbearance means that for the next six months you don't have to make a single mortgage payment now that does not mean that the mortgage payment goes away it just means that you're given a release of that tension and that stress so that you can reorganize your financial matters and then be ready to pay it back at the end of the forbearance term what we need to be very careful of is that forbearance as Tanya had mentioned earlier does not mean forgiveness. It does not mean you do not have to pay back it just means that your payments are delayed there will be no late charges no penalties during that period of forbearance but you do have to pay it back when the forbearance is due so let's say as an example you start off May 1 and you don't make any payments for the next six months on the seventh month what happens all those six months that you did not pay or do on that seventh month plus the seventh month so it's a big chunk of change and you really need to have a plan of action to do that I had a client a customer who needed to do forbearance and they clocked it so that they would not be in a desperate situation where they list their property and the agent wouldn't have to list distress sale they did not want that because it possibly might indicate to buyers out there that you can lowball the offer or something that's really valued at what it was listed at so they requested a forbearance and the listing was taken and a property was sold and closed within the three months their credit was not effected because there were no late payments charge nothing was reported to the credit bureau once the forbearance was approved and they have the funds to pay off what they would do on the deferment now that's a plan of action I'm sure many of us in owning our home if we would like to consider forbearance does not want to have to resort to selling our home necessarily but that's an example of a plan of action to find a way to pay back the six months plus the month that is doin's well we have seen the pros and the cons of doing forbearance so when you are considering that the first thing you should look at is how many months down the road do you think you're going to run into payment trouble so for example today you might be able to make the payment and maybe you might be able to make the payment but possibly June July August you're not able to because you're either waiting for your unemployment check or your tax return refunds your stimulus check so what you want to do is apply for the forbearance ahead of time because lenders are not magicians that overnight say voila you have the forbearance. It could take a lender as much as 30 to 60 days to approve the forbearance and that's where we have the mistake that you suddenly are being charged a late fee because you're not making your payment while you're waiting for the forbearance approval so you need to be careful about that strategize and right now when you look at your world of finances you can tell right away if you're going to run into trouble you can tell you're going to run into trouble if you cannot make your spectrum or online internet payment that you're going to run into trouble. So prepare, be aware of that have look at them down the road and make your application to your lender right away now the problem with the end result is that the good news is that if you can pay it that's wonderful but if you can't pay it before the forbearance is do you need to talk to your lender about possibly doing a modification and modify your loan which is another nice way of saying refinance with a whole without a whole bunch of fees modify your loan during the forbearance period so that when it comes do your modification would have been approved and you go into a new loan without having the stress that if I couldn't handle $1,000 six months ago every month how am I going to handle $7000 six months later and that's another strategy that I've advised to people and you really have to stay on the lender now what's unusual about this time the pandemic is that lenders are more willing to help you with forbearance and to help you with modification if not for the pandemic you probably would have to go late on your mortgage payments before they would believe that you're struggling but because of the pandemic they might see that you were working and now you're making less but you still have the same high debt that was keep that you were capable of paying when you were making more people are thinking oh this is my solution there's my solution and really if you are having trouble before is this something that's really gonna help you or could put you could set you back even further and make things even more complicated maybe adjust that yes barbarians is not the cure arm and it's when people even when people come to ask me should I refinance just because the interest rates are three and a half percent does not mean you should refund minutes you know you might be finishing off your mortgage at four and a quarter interest rate but you might only have fifteen years left you're in a way better position than trying to refinance at three in the quarter and starting all over again on a 30-year mortgage so when you are looking and thinking about redoing your mortgage or deferring it or taking on forbearance or a modification you have to look at everything that's unique to you because every individual every household has a different circumstance forbearance is not for everyone it you could lose your home if you don't make those payments you could lose your home in three to four months after the forbearance was due because you didn't pay all that back Daymond us more are adding up so you really need to consider those factors some of the other ways is check with your realtor there might be a special program that the county is opened up for people regarding credits or things like that and some people have actually gone to the distance of listing their home and downsizing to a smaller home or possibly listing their home and looking at regrouping and then buying again because you just don't want to have that shelter done all over you I mean that's just one of many ways if you have a financial advisor sometimes they'll advise you other things that involve legal action such as bankruptcy or things like that but really everyone wants to try to remain stay in their home and believe me lenders do not want to take your home away so we try everything we can to work with you or at least are supposed to in the servicing department work with you to try to help you stay in your home and keep your home it was rounded back in 2009 for modifications where lenders were required to give key Boyd chance and that's what's happening today to the pandemic has caused a rift in our way of life has had dramatic drastic changes that we've had to adjust to and one of the biggest challenges and things that we suffer and struggle with is always the dollar because things cost money and people have considered downsizing by selling off their cars or trying to sell things that they don't need anymore to get rid of some other death there are other avenues that sometimes Realtors have found that your home is possibly capable of having rental income to help you offset your payment's or maybe I've seen a customer just last month sell their home because they were having these issues and did not want to look at forbearance and the realtor found them a home that had a smaller the unit that they could rent out I was attached to the garage for extra income to help them make the mortgage payment there are much more comfortable everything my dear friends everything is about cash flow and so to try to keep that cash flow manageable but going back to forbearance it's a vehicle that's available to you but it's your responsibility it's on you to be able to pay it back when it comes due someone say that some companies and mortgage companies or lenders will roll whole thing out over a 12-month period so you don't pay it have to pay it back in six months seventh month period is that correct it could be for some lenders not all lenders are the same so you could have a lender that's very flexible and looking at your situation and panning it out will say okay we'll give you a forbearance for six months but it doesn't look like as your income grows and becomes better that you'll be able to pay that lump sum so we will adjust the seventh month through the next twelve months a little bit of each month that you were four Baird so for example the forbearance might be a thousand a month so that's six thousand dollars your payment is a regular thousand dollars a month and I use just a thousand for a zero of easy visualization so in the seventh month instead of paying the whole seven thousand the lender would be by the six thousand among the next twelve months which would mean five hundred dollars per s each month six thousand into twelve months is by about five hundred so your new payment would go up slightly as far as the lenders concern it may not be slightly to you but it will go up to fifteen hundred to help repay the five hundred each month that you were forbearance on for the next twelve months and then after that you go back to your regular payment now that has worked really well but you really need to have that exit strategy cleared and upfront with the lender before they come down with the hatchet problem with servicing is you never know who you're going to be speaking to if any day at the surface same Department and you can have a really lovely servicing person like Tonya or you could have a growling troll and you just don't want to chance that so if you have a lovely service or like Tanya who is sympathetic but yet has to fulfill her role as a lender shall work with you and calculate ahead of time nobody wants disasters nobody wants to know the future will be lit glim so I would suggest highly that while you're doing the relief strategy which is forbearance also work with your lender on the exit strategy so that you're not caught off guard but that is a way that they say what you in saying rolling it out or rolling it make this clear that if they're gonna consider for parents they got to make sure that when they're talking when they're talking to their lender first off talk to someone that you can talk to and communicate effectively and properly and really help you rather than just give you a product that you don't know what to do with so choosing wisely the person you work with upfront making sure that okay you know what you're getting into but then how are you gonna get out of it successfully can this hurt someone's credit does it hurt someone's credit it can and can and may not number one it can hurt your credit if you're already delinquent and going through forbearance now the forbearance part is not going to hurt your credit but going through it and being late is what hurts your credit so the period of time that you're in forbearance it does not hurt your credit however when you find the need to apply somewhere and they see on the credit report zero payments for that month they will be concerned a creditor will be concerned and in that light it may hurt you and your credit depending if you're trying to seek additional credit while you were in the you know in forbearance so that's a if and no type of thing but we would strongly encourage that if that is your last resort then really plan well getting out how do I get out and if selling your home is an option from the beginning hey there you have your exit strategy work with Tanja and set things up if it isn't if you want to stay in your home you really need to either have some source of income that's going to come to you or a windfall give horse of money that falls in your lap or work with the lender what other options would someone have besides this well I always wanted a rich fairy grab grandmother but that would be like I'm not really good at growing vegetables and selling at the farmers market that would be my second best option the thing that's hard is you know a lot of times even the epidemic adds to our situation a lot of times we're in a bad situation to begin with you know and that's a reality sometimes we're already in a bad situation where there no matter what the reason was but we're there and now the pediment comes we even in a worse situation now what happens and so I think that there the relief you know that story about the dike where they put the finger in the water to stop the dam from bursting that's really awful Barrens is and you can't hold that dam of water very long it's going to come and bite you this is a time where you really have to do a reality check and I have advised many many people over the years over 41 years nothing's more important than your health and your well-being because you can oh recover if you want to if it comes to that where that's your last resort selling is an option if you own your home and if that's the last resort and usually that comes because someone has already been in a bad case for a while and the forbearance is just giving them more opportunity to have a better chance at having the listing sold better than being sold as a desperate seller the other option is take on the forbearance when you're working with your service with the lender if they call them the servicer take on the forbearance if you find that they will give you a payment plan to repay that works for you don't say yah yah yah yah yah and then it doesn't work for you and you're back in there again and then the other route is work on the forbearance plan and work on your modification the modifications are a good thing and as I was saying in the panic years of 2008 through 2014 people were getting modifications at the first two years was 1% the second year was 2% the third year was 3% that's how many of them saved their homes are those available now yes they are but there's not that many people are in that much trouble right now except now it's a different story because of the pandemic forbearance is a venue exit is an excellent strategy modification and do not be afraid that if it is your very very last resort letting go selling regrouping regaining your life nothing's more important than your life and your health and then coming back again and that has happened with many people that incidentally has happened with people who claim bankruptcy when you claim bankruptcy you can't do much for seven years seven years later they're back owning one home to own three homes in Seoul there are ways for you to come back you don't have to knock yourself out I want to consider especially during this time which is an exception lenders have waived their late fees so typically on a typical average mortgage not one of those outreach mortgages that were from the days of 1995 of 16 percent interest rate and didn't have to make income as long as you paid it today lenders across the nation are not charging you late fees even if you don't pay your mortgage payment by the first or within the 15 grace period so if you paid your mortgage payment on April 30 you will not be a sessile a charge and it will not be record reported to the credit bureau and that's only because of : pandemic how much longer that lender the lenders will continue to allow that grace were not certain it could be five months after the quarantine is lifted it could be immediate but for now to help you adjust readjust and adapt to your new financial flow of income and outflow of death your mortgage lenders are not supposed to be charging you late fees or penalties so you may want to check with your lender hey friendly lender I'm not able to make my payment by the grace period of the 15 will you be charging me a late fee or reporting it to the credit bar first line bank Bank of Hawaii I know for sure are not charging late fees good information ISA gets people thinking you know hey both the horses on the forbearance don't just run out and go get it people have questions how would they we choose you can always contact me if you have any questions my telephone number is 8 eight two seven six five zero nine three my email is very simple it is deep for dashing forty nine because I love the forty nine San Francisco's roads ROSC at lovely gmail.com so Steve forty nine rose at gmail.com and I come available if you want to just talk sorry about your situation everything is confidential as a lender that's the number one thing we're like attorneys and doctors everything is confidential about your file and about what you share with me but yes absolutely we're here they help and we love for people to stay in their homes because that's what being in this industry Realtors and lenders it's about everyone helping each other and it's about helping our fellow humans not only have a comfortable home to be in but one that they can enjoy for the rest of their lives before you go there some kind of quote or tool or some kind of inspiration you can leave your audience and this time especially during this time thank you so much I do practice meds and our famiiy does em for meditation because it matters to each of us what's inside of us and take some time for yourself e to do some kind of exercise even if it's just walking to the refrigerator and getting an energy bar D for being sure to eat at least a meal a day because I know during this time some of us get so engrossed and wrapped up in so many things we actually forget to have that basic routine of sitting down for a meal and s which I love the most is try to get more sleep then you have been because you've been watching Netflix but that's my corporate evening love laugh and laugh and laugh again thank you so much Tonya Oh a pleasure thank you for being on here with me take your meds every day that is a good one I love it Thanks rolls five everyone thank you for joining